Which One of the Following Statements About Learning Curves Is

question 10

Multiple Choice

Which one of the following statements about learning curves is False?

• A) The direct labor for the n+1st unit will always be less than the direct labor required for the nth unit.
• B) The reduction in time will follow an exponential curve.
• C) A benefit of learning curves is that they are unaffected by factors such as product complexity and the rate of capital additions.
• D) Using industry averages for learning curves can be risky because the type of work and competitive niches can differ from firm to firm.

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Definitions:

Cost of Goods Sold

Costs directly tied to the creation of products sold by a company, encompassing both materials and labor expenses.

Cash Budget

A financial plan that estimates cash inflows and outflows over a specific period, helping businesses manage their cash resources.

Budgeted Cash Disbursements

An estimate of all cash payments that a business plans to make over a specific period, including expenses, purchases, and other payouts.

Selling and Administrative Expense Budget

A detailed plan that estimates the expected selling and administrative expenses for a company over a specific period, helping in the management and planning of overhead costs.